An historic event happened today that has negative implications for anyone counting on social security to fund one's retirement in the future. The event: America's first baby boomer applied for benefits. That put the spotlight on several facts. A FoxNews.com news story excerpt follows:
David Walker, the comptroller general of the Government Accountability Office, Congress' legislative arm, warned the Social Security system will soon have more recipients coming than it can afford to pay out.
"We face a tsunami of spending due primarily to the retirement of the baby boom generation and rising health care costs," Walker said. "So what's happened is we've gone from 16 workers paying into Social Security for every person drawing benefits in 1950 to 3.3 to one today, and we're going down to two to one by the time the boomers retire in big numbers and that's about where it will stay over the long run."
"We're going to have tens of thousands of baby boomers retiring every week over the next decade or so and that means that by time we get to 2017, just 10 years away, we will no longer be collecting enough payroll taxes to pay Social Security benefits," said former Minnesota Democratic Rep. Tim Penny.
Under current law, Social Security won't have enough money to pay promised benefits in 2041 but there is another crunch much, much sooner, the result of the the federal government relying on Social Security to pay for its annual spending.
When Social Security gets payroll taxes it pays out most of the money in benefits. The rest is supposed to go into a trust fund. Instead the government has been spending the money on other government programs, and putting IOUs into the trust. When Social Security needs the money it'll turn to the government waiting for the payback. But the government won't likely have any.
"This money has been borrowed, it's been spent, and there's no easy way to put it back," Penney said.
Full story: http://www.foxnews.com/story/0,2933,301997,00.html
As one on the tail end of the baby boom, I do not expect to receive a dime in social security benefits. My eligibility date has already been pushed ahead a couple years by previous social security "reform" actions. By the time I am old enough to collect them, my benefits will be reformed out of existence.
It seems to me that personal savings and investment is the only option we have if self-employed expediters want to enjoy something more than a hand-to-mouth existence after we grow too old to work.
If you're financial plans for retirement depend on social security and you are under 55 years old, I suggest you make new plans.
David Walker, the comptroller general of the Government Accountability Office, Congress' legislative arm, warned the Social Security system will soon have more recipients coming than it can afford to pay out.
"We face a tsunami of spending due primarily to the retirement of the baby boom generation and rising health care costs," Walker said. "So what's happened is we've gone from 16 workers paying into Social Security for every person drawing benefits in 1950 to 3.3 to one today, and we're going down to two to one by the time the boomers retire in big numbers and that's about where it will stay over the long run."
"We're going to have tens of thousands of baby boomers retiring every week over the next decade or so and that means that by time we get to 2017, just 10 years away, we will no longer be collecting enough payroll taxes to pay Social Security benefits," said former Minnesota Democratic Rep. Tim Penny.
Under current law, Social Security won't have enough money to pay promised benefits in 2041 but there is another crunch much, much sooner, the result of the the federal government relying on Social Security to pay for its annual spending.
When Social Security gets payroll taxes it pays out most of the money in benefits. The rest is supposed to go into a trust fund. Instead the government has been spending the money on other government programs, and putting IOUs into the trust. When Social Security needs the money it'll turn to the government waiting for the payback. But the government won't likely have any.
"This money has been borrowed, it's been spent, and there's no easy way to put it back," Penney said.
Full story: http://www.foxnews.com/story/0,2933,301997,00.html
As one on the tail end of the baby boom, I do not expect to receive a dime in social security benefits. My eligibility date has already been pushed ahead a couple years by previous social security "reform" actions. By the time I am old enough to collect them, my benefits will be reformed out of existence.
It seems to me that personal savings and investment is the only option we have if self-employed expediters want to enjoy something more than a hand-to-mouth existence after we grow too old to work.
If you're financial plans for retirement depend on social security and you are under 55 years old, I suggest you make new plans.
